Adelson is the Sands' chairman, chief executive officer and principal stockholder. His family's recent $475 million investment came in the form of convertible senior notes in a private transaction, but the company's statement did not say in what form it will attempt to raise capital in the new program. The company said it will announce further details of the program in the very near future.
When the Sands raised the $475 million from Adelson, it said that the new financing helped it to meet liquidity requirements and also to meet certain terms of its line of credit for furniture, fixtures and equipment. Adelson's preferred stock will pay 6.5% interest over five years, making it essentially a loan to the Sands over that time.
In a similar move, fellow gaming executive Steve Wynn paid $4 million in fees in September in order to maintain interest rates and had loan covenants altered to help Wynn Resorts maintain its debt-to-cash-flow ratio. Wynn's move also was designed to enable Wynn Resorts to borrow additional money to complete Encore at Wynn Las Vegas, according to SEC filings and published reports.
The Sands Corp., based in Las Vegas, owns and operates the Venetian Resort- Hotel-Casino, the Palazzo Resort-Hotel-Casino and the Sands Expo and Convention Center in Las Vegas and the Venetian Macao Resort-Hotel and the Sands Macao in China's Special Administrative Region of Macao.
The company is currently constructing two additional integrated resorts: Sands Casino Resort Bethlehem in Bethlehem, PA and Marina Bay Sands in Singapore. The Sands is also creating the Cotai Strip, a master-planned development of resort-casino properties in Macao.
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